L'Oréal announces plans to focus on beauty startups

L'Oréal has its eye on beauty startups.

The cosmetics giant has announced the launch of a new corporate venture capital fund dubbed ‘BOLD Business Opportunities for L'Oréal Development,' which will focus on taking minority stakes in innovative startups with high growth potential across the realms of marketing, research and innovation, digital, retail, communication, supply chain and packaging.

The fund's first investment will be in Sillages Paris, a French startup using artificial intelligence and machine learning to offer online shoppers customized fragrances.

"As the beauty leader, it is our mission to empower young entrepreneurs in our industry by helping them to turn their vision into scalable businesses," said Jean-Paul Agon, Chairman and Chief Executive Officer of L'Oréal. "The creation of our own corporate venture fund is a logical step that completes our existing partnerships with funds and incubators and will allow L'Oréal to invest in promising beauty concepts at an early stage."

"The fund strengthens our open innovation strategy of connecting L'Oréal's expertise with an ecosystem of enthusiastic entrepreneurs in the beauty sector to address together new consumer needs and aspirations in our industry," added Laurent Schmitt, President of BOLD Business Opportunities for L'Oréal Development.

Recent high-profile acquisitions by the L'Oréal group have included the augmented reality platform Modiface, the Korean lifestyle, makeup and fashion company Nanda Co. Ltd (Stylenanda), the German natural beauty company Logocos Naturkosmetik AG, and Pulp Riot Hair Color.